Investor Eric Jackson says iBuying platform, Opendoor Technologies Inc. (NASDAQ:OPEN), is undergoing a major transformation as new leadership pushes the company into what he described as a “version 2.0” of its business model, driven heavily by artificial intelligence.
AI Cuts Headcounts, Processes
Jackson, who played an instrumental role in driving renewed attention to the stock and sparking its monumental 1,425% retail-driven rally this year, said that the company is currently undergoing a full-scale reset, during his appearance on Natalie Brunell’s podcast this week.
He highlighted the company’s sweeping restructuring process, noting that it had 1,400 employees up until recently, at a time when it was “sort of like [being] asleep at the wheel.”
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Under the new leadership of CEO Kaz Nejatian, who was previously the COO of Shopify Inc. (NASDAQ:SHOP), the company plans to cut as much as 80% to 90% of its workforce, replacing most of its workers with AI, aimed at cutting costs and unlocking significant efficiencies.
He noted that the process to sell one home, which previously involved 11 people, now takes just one, a shift that happened “just in the last month.”
According to Jackson, the company's long-term vision includes a streamlined process in which sellers can receive cash offers and credit lines in the same app session, aimed at allowing them to begin shopping for their next home.
The company is aiming for “three-day closings,” a dramatic shift from the weeks-long timelines that define traditional real estate transactions.
Analysts Turn Bullish
Jackson has an aggressive target for Opendoor, going all the way up to $500 per share, which represents a phenomenal 6,326% upside from its current levels.
While in no way close to his target, JPMorgan analyst Dae K Lee has broadly backed Jackson’s claims with an “Overweight” rating on the stock, while increasing their Price Target to $8 per share, which represents an upside of 2.8% from current levels.
Lee noted the “major transformation” that is currently underway at the company, while predicting its turn toward sustainable profitability as a result of these structural resets. JPMorgan now projects Opendoor’s 2027 revenue around $8 billion, with contribution margins in the 5% to 7% range.
Shares of Opendoor were up 0.52% on Wednesday, closing at $7.78, and are down 0.77% overnight. The stock scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the Medium and Long terms. Click here for deeper insights into the stock, its peers and competitors.
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